Katapult (NASDAQ:KPLT – Get Free Report) and Oportun Financial (NASDAQ:OPRT – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Profitability
This table compares Katapult and Oportun Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Katapult | 3.60% | -26.41% | 10.86% |
| Oportun Financial | 2.05% | 13.41% | 1.66% |
Risk and Volatility
Katapult has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, Oportun Financial has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Katapult | 1 | 0 | 0 | 0 | 1.00 |
| Oportun Financial | 0 | 3 | 2 | 0 | 2.40 |
Oportun Financial has a consensus target price of $7.33, indicating a potential downside of 12.18%. Given Oportun Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Oportun Financial is more favorable than Katapult.
Institutional and Insider Ownership
26.8% of Katapult shares are held by institutional investors. Comparatively, 82.7% of Oportun Financial shares are held by institutional investors. 8.0% of Katapult shares are held by insiders. Comparatively, 1.6% of Oportun Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Katapult and Oportun Financial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Katapult | $291.76 million | 0.08 | $1.37 million | $1.37 | 3.30 |
| Oportun Financial | $956.70 million | 0.40 | $25.25 million | $0.40 | 20.87 |
Oportun Financial has higher revenue and earnings than Katapult. Katapult is trading at a lower price-to-earnings ratio than Oportun Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Oportun Financial beats Katapult on 9 of the 14 factors compared between the two stocks.
About Katapult
Katapult Holdings, Inc., an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. The company's technology platform provides nonprime consumers with a lease purchase option to enable them to obtain durable goods from its network of e-commerce retailers. It also offers Katapult Pay, a one-time use virtual card technology that makes lease purchasing and transactions. The company was formerly known as Cognical Holdings, Inc. and changed its name to Katapult Holdings, Inc. in February 2020. The company is headquartered in Plano, Texas.
About Oportun Financial
Oportun Financial Corporation provides financial services. The company offers personal loans and credit cards. It serves customers through online and over the phone, as well as through retail and Lending as a Service partner locations. The company was founded in 2005 and is headquartered in San Carlos, California.
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